How SEC's Proposed Rule Changes Could Affect Investors

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.3 • 3.1K Ratings

🗓️ 9 June 2022

⏱️ 25 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

SEC chairman Gary Gensler outlined rule changes to require trading firms to directly compete to execute trades from individual investors (0:25) Andy Cross discusses: - Why payment-for-order-flow (PFOF) is going to be a big topic this summer - Potential threats to Robinhood's business model - Five Below's recent (and uncharacteristic) struggles - Takeaways from Spotify's investor day event, including a push into audiobooks (15:45) Deidre Woollard continues her conversation with Jason Hall about homebuilders, including key metrics to watch and a few stock ideas. Stocks discussed: HOOD, FIVE, DLTR, DG, WMT, SPOT, AMZN, AAPL, MTH, LGIH, NVR Host: Chris Hill Guests: Andy Cross, Deidre Woollard, Jason Hall Producer: Ricky Mulvey Engineer: Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Spodify is going after part of Amazon's business and the SEC is going after a certain type
0:10.3	of stock trading.
0:11.8	Motley Fool Money starts now.
0:17.6	I'm Chris Hill and I'm joined today by the Chief Investment Officer, Andy Cross.
0:21.4	Thanks for being here.
0:22.4	Yeah, of course, Chris.
0:23.4	Thanks for having me.
0:25.5	We got some companies to get to, but we got to start with the SEC, which is a place
0:29.4	where we rarely start on this show.
0:32.1	But on Wednesday, Gary Gantzler, the chairman of the SEC, proposed rule changes that could
0:38.8	affect individual investors like you and me and the dozens of listeners.
0:43.4	The plan would require trading firms to directly compete to execute trades from individual
0:49.4	investors in an effort to increase competition.
0:53.0	And this is all about an issue that we've heard about and talked about from time to time
0:57.6	over the past couple of years.
0:58.9	Payment for order flow.
1:00.7	This is where brokers like Robin Hood and E-Trade and others are paid by wholesale market
1:06.9	makers for orders.
1:09.2	Gantzler sort of put this out there and it really starts this process that if I had the
1:14.2	timing right, Andy, this is going to go through the summer.
1:17.3	Eventually, official rule changes are going to be proposed.
1:20.7	Will be available for public comment for institutions and individuals to weigh in on.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Motley Fool, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Motley Fool and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.